A new 'rainy day' savings pot will be trialled in the workplace in an initiative designed to give people an option to dip into instead of turning to various forms of debt in the event of unforeseen emergencies such as boilers or cars breaking down.

It is hoped that through this initiative, launched by Nest Insight - the research arm of Nest - people will be less reliant on credit cards and payday loans to tide them over when they are desperate for cash.

It comes at a time when many workers are in a vulnerable financial position.

Only 44 per cent have £500 or more in liquid savings to hand for emergencies, and 26 per cent have nothing put away, according to Money Advice Service research.

Accessing payday loans and credit cards in times of financial trouble may be a thing of the past with the new 'Sidecar Savings' initiative to be trialed in 2019

The new initiative builds on the success of automatic enrollment into workplace pensions by Nest, which has encouraged millions of people to build long-term savings pots for their retirement.

The workplace pension scheme was set up by the Government to make sure employers can meet their requirements under automatic enrollment.

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A Department for Work and Pensions spokesman said it will be monitoring the trial closely.

They said: 'Nest's "sidecar" approach is an innovative concept, potentially offering a new way for people to build up a financial buffer to protect them from unexpected bills while continuing to save in workplace pensions.'

Workplace pension pots will still not be accessible until age 55, but this new savings vehicle will enable workers to build shorter-term savings pots alongside them which they can access when they need to.

The 'sidecar savings' trial is due to go live in some workplaces over the coming months, with workers starting to make contributions in 2019.

Unlike workplace pensions, taking part in the initiative is not compulsory. However, employees can sign up if they want to after the benefits of doing so have been explained.

Contributions made above minimum auto-enrolment levels will initially be shared out between the emergency savings account and the pension pot.

This will happen until the amount in the emergency short-term savings pot is filled up to a level called the 'savings cap'.

All contributions made after the savings cap has been reached will then go into the pension pot.

But if the saver then takes money out of the emergency savings pot, it will then be topped up again with contributions once again being divided between the emergency pot and pension pot.

Under the trial the savings cap for emergency pots will be set at £1,000 and a 'competitive rate of interest' will be paid.

One of the reasons for a savings cap is to make sure people have a good balance of savings and do not end up saving too much in short-term pots.

The trial will be monitored for two years to assess sign-up rates, how much people save, and the impact on their financial wellbeing.

The JPMorgan Chase Foundation and the MAS will be providing support for the trial.

The sidecar accounts will be provided by Salary Finance, working alongside Nest pension pots.

While the trial will initially involve Nest pension pots, those behind the scheme said they are open to the possibility other pension providers also getting involved.

British multi-national retailer, Timpson, will be the first employer to roll the trial out within the organisation of over 5,600 workers.

James Timpson, chief executive at Timpson, said: 'We know that money worries can have a really negative impact on colleagues' health, happiness, and productivity at work.

'We're delighted to be taking part in Nest Insight's sidecar savings trial to help our employees become more financially resilient, both today and into their retirement.'